Akamai Technologies Inc (AKAM)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		5.52	5.72	5.64	5.43	5.28	5.23	5.23	5.13	5.31	5.76	5.31	4.85	5.04	5.07	5.00	4.84	4.77	4.87	4.65	4.75
DSO	days	66.14	63.80	64.77	67.18	69.09	69.74	69.80	71.16	68.71	63.32	68.75	75.32	72.41	71.96	73.04	75.46	76.57	74.90	78.56	76.85

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.52
= 66.14

The Days Sales Outstanding (DSO) for Akamai Technologies Inc have shown a consistent trend over the past few years. From the data provided, we can observe that the DSO was relatively stable around the mid-70s range from March 2020 to March 2023, indicating that on average, it took the company around 70-75 days to collect its accounts receivable.

However, from June 2023 onwards, there has been a noticeable improvement in DSO, with the number declining steadily to around the mid-60s. This reduction suggests that Akamai Technologies Inc has become more efficient in collecting its receivables, potentially due to better credit control measures or improved invoicing and payment processes.

A decreasing trend in DSO is generally a positive indicator as it signifies a faster conversion of credit sales into cash, which can improve liquidity and working capital management for the company. It also indicates a lower risk of bad debts and better overall financial health.

Overall, the decreasing trend in DSO for Akamai Technologies Inc from June 2023 to December 2024 is a positive signal of improved cash flow management and operational efficiency in the collection of accounts receivable.